Regional highlights show that the North and London are the most generous regions as 16% give some of the cash released from their homes via equity release as a gift to their families. The North are also most likely to spend the cash released from their home on improving them (69%), followed by the North West (67%) and Yorkshire & Humberside (66%). Northern Ireland have the greatest focus on debt repayment and by far the lowest when it comes to holidays - only 18% said they would use the cash to go on holidays yet well over half (68%) repay their outstanding debts or mortgage.
For those people with a property value of less than £200,000, home improvement is their biggest priority (63%) which comes before repaying debts or mortgages (57%). Looking at all property values those which stand at less than £200,000 are more likely (40%) to spend the cash on a holiday than any other value of property.
As consumers get older they are more likely to give some of the money they have received from equity release as a gift to their family (19% of those over 75 compared to just 6% of those aged 55-59). The younger the person who releases equity from their home the more likely they are to pay off outstanding debts or their mortgage; 69% of those aged 60-64 do so, followed by 67% of those aged 55-59.
Dean Mirfin, Key Retirement Solutions’ business development director, said, “It is interesting to see how the uses of equity release in many ways are common across the regions of the country; however it is equally interesting to note some of the notable differences when we look more closely at the results.
“This analysis helps to further ensure that product design and advice continues to fulfil the needs of those looking to release equity from their homes and to cater for needs over time. The most popular reasons at all ages do not come as a great surprise, being home improvement, repaying debt and holidays. Whilst few appear to release equity for an extra monthly income, many incomes are directly improved by the repayment of debt.”
